Today, it has become a growing trend to integrate two of the most important functions which a company requires; the functions such as data analytics and predictive analytics have become newer trends in the business world. So, it has become important to have in-depth knowledge of the terms when deciding on the process of integrating business analytics and strategic business planning.
To understand the integration of business analytics into strategic business planning, you first need to have a clear understanding of the two terms ‘Business analytics’ and ‘strategic planning’.
These terms are often used in the business world as their functions are responsible for a better performance of a business. So, let’s understand what these terms are—
Business analytics deals with the analysis of data to gain insights. It helps in the investigation of the past business performances in order to conduct business planning for the betterment and growth of the company.
Business analytics professionals use statistical methods to understand the databases, through which they assess the performances and make decisions for the improvement needed.
Whereas, Strategic Business Planning deals with the analysis of the strengths and weaknesses of the firm in order to identify long-term objectives. It is a process by which the information is collected and analysed. It also deals with the analysis of internal and external data in order to boost the growth and development of the company.
Strategic business planning often uses tools such as SWOT (Strengths, weaknesses, opportunities and threats) analysis in order to have future business visions, business plans and programmes.
Business analytics and strategic business planning are used to have growth and development in a company. They both help in bringing improvement and in making high-level decisions.
But if we think of integrating business analytics into strategic business planning, will it be effective? Well, the answer is that they both will provide the company with a better performance. Why? This is so because they both aim at bringing growth to the company.
Business analytics focuses on statistical data in order to gain insights which if integrated into the process of strategic business planning will help tremendously in the performance of the company which is why individuals are greatly inclined towards getting a Master’s in Business Analytics.
What are the benefits of Integration?
The integration of business analytics and strategic business planning provide several benefits which can make a company take this step. It is significant to know what benefits will come when the functions of two of the important processes are integrated. Let’s have a look over the several benefits which are likely to come–
- It will provide a better vision for the future as the statistical data derived by the process of business analytics will help in better decision making and therefore helping in strategically planning for the future.
- It will help the firm in understanding the performance which will further initiate a better analysis of the improvement needed. As a result, this will help in setting the goals and objectives for the development of the firm.
- With the help of SWOT analysis, the firm will be aware of the strengths and weaknesses which will help business analytics professionals in decision-making.
- Business analytics professionals deal with analysis of the internal data of the company whereas Strategic Business Planners deal with both internal and external assessments. This will help business analytics professionals in making better decisions whereas business planners in planning strategically.
- The integration of business analytics into strategic business planning will also help in less consumption of time as they both aim at achieving success for the company.
- This integration also benefits in avoiding error-prone data transfer between systems.
What are the Challenges faced in the process of Integrating Business analytics and Strategic business planning?
The integration of business analytics and strategic business planning has its benefits as well as its challenges. It sometimes becomes a difficult process. Every company before taking this step should know its challenges as well—
- There can be limited softwares for the integration process which lowers the advantages for a company to take this decision.
- The different tools used for the integration can result in a lack of coherence of data. There are several tools to use but it’s important to know which tool will work the best.
- The usage of software tools such as Excel has also been cited as a reason for inconsistencies.
What are the Major Requirements for the Integrated Process of Business Analytics into strategic business planning?
For any successful integration process, it’s important to know the major requirements. Every company wants the integration to be a success which will help in achieving the goals and objective giving the business a success. So, what are the major requirements needed for the process of integration of business analytics into strategic business planning—
- There should be a single technical platform for the performance data and planned data so that there is no lack of coherency.
- The functions of the process of planning, monitoring and reporting should be flexible.
- The functions of both the business analytics and strategic business planning should be available on a single or integrated platform.
Business analytics and strategic business planning together will benefit a company in several ways. Therefore, in order to progress towards growth of the company the integration of the two becomes important.
Business analytics has its own benefits which if integrated into strategic business planning helps in gaining insights into big amounts of databases. These insights will help the planners in setting goals and objectives which when achieved, will ultimately help in progress of the company.
Big companies with big databases require this integration, in order to achieve more success and be able to provide their services and products as far as they can in the world.
Before thinking of taking this step, it becomes very important to know the challenges with the benefits which will come in the way. This integration has become a trend today. Many big firms have been following this trend in order to provide good services to their clients or customers.